A group of industry veterans including Avalanche Studios co-founders Linus and Viktor Blomberg have established a new studio called Elemental Games.
The founding team also includes experienced developers from companies such as DICE, Ubisoft and Epic Games.
Based in Sweden, Elemental Games will focus on creating high-quality, open-world experiences and will be privately owned.
Studio co-founder Linus Blomberg said the company wants to "evolve systemic gameplay and the open-world genre," and will seek to build a team with experience in both AAA and indie development.
"We've seen in the past how technology, art and design are often in conflict rather than elevating each other," continued Blomberg, detailing the studio's development philosophy.
"We are creating an environment where none of these disciplines dictates to the others, where we use our experience and craftsmanship in a truly collaborative way so that opportunities open up that we wouldn't even have considered in isolation."
Elemental is also developing proprietary open-world technology, which will be used alongside third-party tools.